MINIMUM WAGE FIXING

Procedure

Procedure in general

Sweden has no national legislation concerning minimum wages. Minimum wage rates are determined in collective agreements.

Government decides alone

There is no formal procedure for extending collective agreements by decision of a public authority or automatically.

Minimum wage set through decentralized collective bargaining

There are three main types of collective agreement in Sweden:1) For certain sectors, central collective agreements at the national level determine minimum wage rates and other minimum standards for those workers who are members of the unions that are party to the agreement. 2) Regional sectoral agreements may also set minimum wage rates provided that they are higher than any minimum rates negotiated in the central collective agreements. 3) Finally, any collective agreement at the enterprise level must provide minimum standards that are higher than any central or sectoral collective agreement that is applicable.

Coverage

Scope

Collective agreements automatically bind both the members of the trade union and the companies that are members of the employer` organisation concluding the agreement. A person who is not a member of the trade union usually has no rights under the collective agreement.

» Specific minimum wage by region

» Minimum wage levels for specific categories of workers

Level

Minimum wage level(s) in national currency

16.476 kr per month from 1 April 2009 for workers in Technical Enterprises)15.903 kr from 1 April 2008 - 31 March 2009 for workers in Technical Enterprises)

Collective Agreement for Technical Enterprises §3.2

Enforcement mechanisms

Fines in national currency for non-respect of legislation

The Swedish Labour Court determines disputes relating to collective agreements that could not be solved via negotations. Any party to an collective agreement, found guilty of breaching that agreement may be ordered to pay damages as determined by the Labour Court.

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